Question
1) High Seas Sails Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and currently produce 36,000 sails
1) High Seas Sails Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and currently produce 36,000 sails per year and is currently producing and selling 25,000 sails per year. the following information relates to current production:
Sales price unit $175
Variable cost per unit:
Manufacturing $50
Selling and administrative $10
total fixed cost:
Manufacturing $700,000
Selling and administrative $250,000
if a special pricing order is accepted for 5,700 sails at a sales price of $170 per unit, fixed cost remain unchanged, and there are no variable selling and administrative cost for this order, what is the change in operating income?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started